World Economic Forum Forms Coalition to Use Web3, Blockchain for Positive Climate Action – Forkast News | Jewelry Dukan

The World Economic Forum launches a new public-private partnership to leverage Web3 technologies to better support positive climate outcomes as awareness of blockchain technologies’ impact on the environment gathers momentum.

The Switzerland-based non-governmental organization on Wednesday announced the Crypto Sustainability Coalition, made up of 30 partners at the intersection of sustainable development and Web3, crypto and blockchain technologies, during a panel held in the United States

The coalition plans to support research and development, share best practices and influence regulation, and includes interdisciplinary members ranging from blockchain platform Solana to sustainability-focused non-profits like Climate Collective and the University of Lisbon.

Crypto technology recently made strides towards sustainability with the Ethereum merger, reducing the energy consumption of the second largest blockchain. However, the industry as a whole remains energy intensive. Bitcoin, the largest cryptocurrency by market cap, has an annualized carbon footprint equivalent to that of the country of Greece and its energy consumption is comparable to that of the United Arab Emirates, according to the Digiconomist Bitcoin Energy Consumption Index.

“The goals and pathways that the crypto industry needs to decarbonize are quite complex,” said Amy Westervelt, Energy Web’s regional director of the Americas, during the online conference. Energy Web builds decarbonization-focused, open-source, decentralized operating systems. “I think we need the collaboration of mainstream NGOs, of climate scientists, of utilities and of the industries that are on the ground, so we can make sure these really innovative and unique tools that we have are being applied in the right direction.” said Westervelt added.

When less is better

A key task of the coalition will be to analyze the energy and material consumption of the crypto industry to better understand its impact on climate and nature. However, the group also plans to proactively explore how web3 could help countries achieve lower carbon emissions targets.

Blockchain technologies in particular are well suited as a home for carbon credit markets, according to Josh Knauer, co-founder of ReSeed Carbon Assets and co-chair of the Coalition Working Group on Carbon Credit. Reseed Carbon Assets is a company that sells ReSeed Carbon Protection Credits, which are digital tokens that reference blocks of farmland where an estimated ton of carbon is stored in vegetation and soil.

Using satellite imagery and artificial intelligence, the buyer of a Carbon Protection Credit can ensure ownership of the stored and protected carbon, with the price fluctuating in a free and decentralized market, according to the company’s website.

Knauer adds that blockchain is inclusive and expands access to carbon markets for even the world’s smallest farmers, forest managers and indigenous communities. “This technology can help create coordination, transparency and efficiency in systems, and can provide more insight and accountability when it comes to actions, commitments and investments,” he said, adding that it helps ensure that the Farmers themselves are fairly rewarded and benefit when the price of carbon rises.

Greener crypto mining

In addition, the Crypto Sustainability Coalition seeks to support more efficient cryptocurrency mining practices as the industry consumes massive amounts of energy to conduct transactions. However, the decentralized and flexible nature of the miners could allow them to run only during off-peak periods when less electricity from the grid is being consumed by other sources, according to Lucia Gallardo, founder and chief executive officer (CEO) of EmergeFrance.

Additionally, the waste heat from crypto mining machines could be recycled, offering a new business model for utilities and investors looking to develop microgrids for renewable energy, Gallardo said. EmergeFrance has been working with clients looking to recycle the heat generated from crypto mining and turn it into a source to heat and power water systems for public facilities, she added.

Other key coalition partners include information technology company Accenture, Ripple Labs, Inc., the company developing the Ripple payment protocol and exchange network, and environmental organization Rainforest Partnership. The coalition will work as part of the Crypto Impact and Sustainability Accelerator (CISA), a grant-funded initiative launched by the World Economic Forum earlier this year to advance knowledge of the environmental, social and governance (ESG) impact of crypto technologies. to promote .

“We need open standards, we need open protocols, we need excellent debates and exchanges, that’s what the scientific method is about, that’s what we want to pursue here,” said Knauer, adding: “Then we need larger institutions like the World Economic Forum, like the Royal Bank, like commercial banks, like other other investors to step in and help these solutions scale.”

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